28. If expectations are rational, can fiscal and monetary policy control real output?

a. Yes, provided policies are announced in advance.

b. Yes, both policies are effective in altering real output in the desired way.

c. No, because policymakers can’t accurately predict how people’s expectations will be affected by the policies they adopt.

d. No, only fiscal policy can alter unemployment in the short run.

e. No, only monetary policy can alter unemployment in the short run.